LibDems call for tighter laws in financial sector
LibDem deputy is calling for tighter regulation of the financial markets in wake of Lehman collapse
In the wake of the Lehman collapse,
Liberal Democrats deputy leader Vince
Cable has called for tighter regulation to end the ‘dangerous ambiguity’ of when
the government should step in to save troubled financial institutions.
Speaking at the at the Liberal Democrats conference yesterday, he urged the
chancellor to clarify the conditions ‘when government intervenes to save an
institution and when it does not’, The Financial Times reports.
He was warning of ‘very grave’ consequences from the Lehman collapse,
including problems in credit markets which had a ‘potential destructive
capacity’ of a different ‘order of magnitude’ from property markets.
He said the financial sector could not revert to past practices and would
have to be ‘much more tightly regulated in the public interest’.